Capital Allowances Act 2001

559 Effect of successions

(1) This section applies if—

(a) a person (“the successor”) succeeds to a relevant activity which until that time was carried on by another person (“the predecessor”), and

(b) the relevant activity is treated as discontinued under section 113(1) or 337(1) of ICTA (change in persons carrying on a trade etc. and effect of company ceasing to trade etc.).

(2) The property in question is to be treated as if—

(a) it had been sold to the successor when the succession takes place, and

(b) the net proceeds of the sale were the market value of the property.

(3) The property in question is any property which—

(a) immediately before the succession, was in use for the purposes of the discontinued relevant activity, and

(b) immediately after the succession, and without being sold, is in use for the purposes of the new relevant activity.

(4) No entitlement to an initial allowance arises under this section.

(5) In this section “relevant activity” means a trade, property business, profession or vocation.